Customer Care And Sales Volume: A Case Study Of Air Tanzania

ABSTRACT

The purpose of the study was to establish the effects of customer care and sales volume. The study was prompted by the fact that the airline's performance was' far below expectation of the airline's management and was affecting its' sales volume. The study used a cross sectional survey descriptive research designs.

The research was guided by the following objectives; to establish factors that affect customer care in Air Tanzania, establish relationship between customer care and sales volume, and establish ways to improve customer care in Kenya

airways. Data were collected from secondary and primary sources. Purposively selected primary data sources were airlines and travel agents officials and customers. Data were collected from these respondents using questionnaires. The research findings revealed that different research factors affect customer care these included product knowledge, staff competence, provision of information, on-time performance, communication system, competition, profits and handling of customer complaints. The mentioned factors will positively or negatively contribute to enhance of customer care in an organization thus impact on sales volumes.

The research findings revealed concluded that there is a strong relationship between customer care and sales volume through Air Tanzania's loyal program. The research findings recommended that customer care could be improved in

different ways by improving on the check-in counters at the airport, recruitment more reservation and ticketing staff that should be well trained and experienced.

Air Tanzania should install a modern call centre and improve on public relation. Air Tanzania should have separate counters and reward competent staff and agents and improve on the Air Tanzania web-site.

TABLE OF CONTENTS

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Declaration ................................................................................................................... . 11

Approval. ...................................................................................................................... . iii

Acknowledgments ........................................................................................................ . IV

Dedication .................................................................................................................... . V

Table of contents .......................................................................................................... . vi

List of tables ............................................................................................... . viii

List of figures ....................................................................... . viii

Abstract. ................................................................................ . IX

CHAPTER ONE: INTRODUCTION ..................................................... . I

I.I Background ofthe study ......................................................................................... . 1

1.2 Statement of the problem ........................................................................................ . 2

1.3 Purpose of the study ........................................................................ . 3

1.4 Objectives of the study ............................................................................................ . 3

1.5 Research questions ........................................................................... . 3

1.6 Scope of the study .......................................................................... .

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1. 7 Significance of the study ................................................................... . 3

1.8 Conceptual Fra1nework ......................................................................................... . 4

CHAPTER TWO: LITERATURE REVIEW ........................................... . 6

2.1 Concept of customer care ................................................................. . 6

2.1.1 Concept of sales volume ................................................................ . 6

2.2 Factors that affect customer care ........................................................ . 7

2.3 The relationship between customer care and sales volume ........................... . 8

2.4 Ways that can be established to improve customer care .............................. . 9

CHAPTER THREE: METHODS ........................................................................... . 11

3.1 Introduction ................................................................................ . 11

3.2 Research design ........................................................................... . 11

3.3 Study areas ............................................................................... . 11

3.4 Study population .......................................................................... . 12

3.5 Sampling and sample size ................................................................. . 12

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3.6 Data sources.................................................................................. 12

3.7 Data collection methods and instruments.............................................. 12

3. 7 .1 Questionnaires.............................................................................. 13

3.7.2 Interviewing method..................................................................... 13

3.7.3 Observation............................................................................... 13

3.8 Data analysis............................................................................... 14

3.9 Challenges encountered in conducting the study..................................... 14

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION 15

4.1 Introduction................................................................................. 15

4.2 sample characteristics....................................................................... 15

4.3 Factors that affect customer care......................................................... 17

4.4 The relationship between customer care and sales volume . . . . . . . . . . . . . . . .. . . . . . . . . . 19

4.5 Areas respondents need to be improved by Air Tanzania............................. 20

4.5.1 Ways that can be established to improve customer care............................ 21

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION, 23

RECOMMENDATIONSAND AREAS OF FUTURE RESEARCH

5.1 Summary of findings..................................................................... 23

5.1.1 Factors affecting customer care....................................................... 23

5.1.2 The relationship between customer care and sales volume....................... 23

5.1.3 Ways to improve customer care....................................................... 23

5.2 Conclusion................................................................................ 24

5.3 Recommendations........................................................................ 24

REFERENCES................................................................................ 26

Appendices.................................................................................... 27